NEU Battery Materials Secures $7.6M to Scale Lithium Battery Recycling Operations

Singapore-based NEU Battery Materials has successfully raised $7.6 million in an oversubscribed funding round co-led by venture capital firm Shift4Good and government-backed deep-tech investor SGInnovate. This funding marks a significant step for NEU as it transitions from technology development to industrial-scale production, following the commissioning of a factory in Singapore capable of processing 1,300 tonnes of lithium iron phosphate (LFP) batteries annually.

The capital raised will be directed towards ramping up production of battery-grade lithium from LFP battery feedstock, which includes both cathode manufacturing scraps and end-of-life battery black mass. Additionally, the funds will support NEU's efforts to expand its operations internationally.

NEU Battery Materials employs a patented electrochemical process that allows for the recovery of lithium from LFP batteries, utilizing electricity, water, and regenerative chemicals. This method generates less waste compared to traditional hydrometallurgical and pyrometallurgical recycling processes, and the company claims it can reduce emissions by up to 83% compared to these alternatives.

The funding round also attracted new investors such as Lotus Singapore Group and M7 Holdings, along with existing investor Paragon Ventures I. Notably, this latest funding follows NEU's previous seed round in 2023, where the company raised $3.7 million, also led by SGInnovate.

With LFP batteries accounting for over 90% of battery energy storage systems globally and more than 55% of electric vehicle batteries, the demand for effective recycling technologies is increasing. The International Energy Agency emphasizes the growing importance of recycling technologies in securing supplies of critical battery materials, making NEU's innovations timely and relevant.

Bryan Oh, co-founder and CEO of NEU, expressed the company's vision to build cleaner and more resilient lithium supply chains for the ongoing energy transition. He stated that the funding will help expand their recycling technology and enable them to produce battery-grade lithium at progressively lower costs.

The competitive landscape for battery recycling is intensifying, and NEU aims to focus on increasing production, minimizing costs, and expanding its network of partners as it prepares for international deployment. Shift4Good's co-founder, Sebastien Guillaud, noted that LFP battery recycling is both a decarbonization and industrial sovereignty imperative. SGInnovate’s head of investments, Hsien-Hui Tong, reaffirmed the investor's commitment to supporting NEU's growth in this critical sector.